US-based laboratory services provider Labcorp has unveiled its plans to acquire Baystate Health’s outreach laboratory business and select operating assets, for an undisclosed sum.

Baystate Health is a not-for-profit, integrated healthcare system that serves around 800,000 people throughout the western New England region.

The select operating assets to be acquired by Labcorp include laboratory service centres operated by Baystate Health throughout Massachusetts.

The acquisition builds on the existing reference laboratory relationship between Labcorp and Baystate Health to improve routine and speciality lab testing.

Labcorp will open a regional laboratory at the existing Baystate Health location in Holyoke, Massachusetts, to provide professional services for anatomic pathology and speciality testing.

The acquisition is expected to be completed in early 2024, subject to certain customary closing conditions and regulatory approvals.

Labcorp Northeast Division senior vice president Bill Haas said: “Labcorp is focused on delivering high-quality, cost-effective laboratory testing to health systems, physicians, patients, health plans and communities we serve.

“We are thrilled to grow our important relationship with Baystate Health and to realize our shared vision to enhance the patient and provider experience in the communities Baystate serves.”

Baystate Health hospital operations senior vice president and Baystate Medical Centre president Sam Skura said: “For many years, Labcorp has served as our trusted primary reference testing provider, and we are confident they will continue to deliver high-quality outcomes, affordable access, and optimal service for our patients and providers.”

In addition to the acquisition, Labcorp will collaborate with Baystate Health to enhance affordable, high-quality healthcare services for underserved communities throughout the region.

The strategic partnership aims to improve access to testing for patients and providers, standardise laboratory testing, and expand the ability to deliver timely results.

According to Labcorp, the acquisition will leverage key capabilities, experience, and technologies from both companies to advance the delivery of high-quality patient care.

It will combine Labcorp’s clinical laboratory services, data, and digital tools, with continued patient access through the network of Baystate’s patient service centres.

Baystate Health president and CEO Mark Keroack said: “This collaboration is fully aligned with Baystate Health’s mission to improve the health of the people in our communities every day, with quality and compassion.

“Labcorp believes in our mission and will continue to deliver a high level of service with plans to make capital investments in structure and process to deliver laboratory services to our patient population in more innovative and efficient ways.”